European Money Markets Institute Launches Second Consultation On Hybrid Methodology For Euribor

Author:Shearman & Sterling LLP
Profession:Shearman & Sterling LLP

On November 12, 2018, the European Money Markets Institute published a second consultation paper (dated October 17, 2018) on its proposals to introduce a hybrid determination methodology for the Euro Interbank Offered Rate (Euribor). EMMI is the administrator for Euribor, a major euro interest reference rate for unsecured interbank short-term lending and borrowing. Euribor was classed as a critical benchmark of systemic importance for financial stability by the European Commission in 2016.

The consultation paper sets out a summary of EMMI's findings during the testing phase for the newly proposed hybrid methodology, which took place between May and July 2018, and provides details on EMMI's proposals for the different methodological parameters that were yet to be specified when EMMI's first consultation was issued in March 2018. The consultation paper seeks feedback from market participants on a number of questions on aspects of the proposed methodology.

Comments on the consultation are requested by November 30, 2018. EMMI expects to publish a summary of the feedback received and a thorough view of the final methodological...

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